City bond would pay for water line

Published: Wednesday, January 21, 2009 at 3:00 p.m.

Last Modified: Wednesday, January 21, 2009 at 11:39 a.m.

THIBODAUX — City officials agreed to sell $8 million in bonds to overhaul the web of cast-iron water pipes in east Thibodaux that have gone untouched for six decades.

City officials say they hope the cost of the endeavor, which will be known in coming months as bids and estimates stream in, will fall short of the bond money council members unanimously agreed upon during their Tuesday meeting.

Taxpayers will not need to approve the bond, as state law does not require it in this case.

Officials recently pushed for the bond sale due to favorable market conditions brought on by the recession.

“You could win on this deal three ways,” said bonding attorney Jerry R. Osborne, listing low-interest rates, cheap construction materials and increased inflation – meaning more city-tax income -- in about five years if the federal government sells a trillion dollars in debt as some financial experts predict.

Plans to overhaul Thibodaux’s water system have been in the works since 1997, when Thibodaux contracted engineer Al Badeaux to perform a citywide study.

City officials hope to replace cast-iron pipes, which are prone to leaks and therefore waste city water, with more stable polyethylene and PVC piping.

City Public Works Director Kermit Kraemer said the east Thibodaux portion of the project includes an area bounded by Canal Boulevard, Audubon Avenue, La. 1 and East 12th Street.

The citywide plan was divided

into five parts: north, east, south, west and central. About 2002, the city overhauled the water system in west Thibodaux, the first of the five sections.

That portion cost about $1 million, Mayor Charles Caillouet said.

That’s far less than the several million dollars he expects for the east side, largely due to west Thibodaux having fewer sidewalks, concrete structures blocking pipe access and newer construction with modern piping.

The order that the next three sections of the city will get a water-pipe makeover hasn’t been determined, Kraemer said.

Under the best-case scenario, Caillouet said, contractors can start overhauling the east side in as

early as three months, but he

doesn’t expect them to begin for four to six months.

Caillouet said he hopes the east-side overhaul will be complete this year.

Councilman Chip Badeaux expressed concern at Tuesday’s meeting that city residents’ water bills rose by 15 percent at the start of the year.

Caillouet and other officials say the hike was not spurred by the bond issue, which will be paid for with city water revenues.

Water prices rose in line with average rates of the previous 12 months, as determined by the U.S. Department of Labor South Urban National Consumer Price Index and required by city ordinance.

Badeaux voted for the bond issue but questioned why the consumer-price index showed such an increase, when the South Region Consumer Price Index compiled by the federal Labor Department states water prices in the South were unchanged for the last 12 months.

“I have never in 40 years seen a CPI higher than 5 percent,” he said.

Staff Writer Ben Lundin can be reached at 448-7635 or ben.lundin@dailycomet.com.

<p>THIBODAUX  City officials agreed to sell $8 million in bonds to overhaul the web of cast-iron water pipes in east Thibodaux that have gone untouched for six decades.</p><p>City officials say they hope the cost of the endeavor, which will be known in coming months as bids and estimates stream in, will fall short of the bond money council members unanimously agreed upon during their Tuesday meeting.</p><p>Taxpayers will not need to approve the bond, as state law does not require it in this case.</p><p>Officials recently pushed for the bond sale due to favorable market conditions brought on by the recession.</p><p>You could win on this deal three ways, said bonding attorney Jerry R. Osborne, listing low-interest rates, cheap construction materials and increased inflation – meaning more city-tax income -- in about five years if the federal government sells a trillion dollars in debt as some financial experts predict. </p><p>Plans to overhaul Thibodaux’s water system have been in the works since 1997, when Thibodaux contracted engineer Al Badeaux to perform a citywide study.</p><p>City officials hope to replace cast-iron pipes, which are prone to leaks and therefore waste city water, with more stable polyethylene and PVC piping.</p><p>City Public Works Director Kermit Kraemer said the east Thibodaux portion of the project includes an area bounded by Canal Boulevard, Audubon Avenue, La. 1 and East 12th Street.</p><p>The citywide plan was divided </p><p>into five parts: north, east, south, west and central. About 2002, the city overhauled the water system in west Thibodaux, the first of the five sections.</p><p>That portion cost about $1 million, Mayor Charles Caillouet said.</p><p>That’s far less than the several million dollars he expects for the east side, largely due to west Thibodaux having fewer sidewalks, concrete structures blocking pipe access and newer construction with modern piping.</p><p>The order that the next three sections of the city will get a water-pipe makeover hasn’t been determined, Kraemer said.</p><p>Under the best-case scenario, Caillouet said, contractors can start overhauling the east side in as </p><p>early as three months, but he </p><p>doesn’t expect them to begin for four to six months.</p><p>Caillouet said he hopes the east-side overhaul will be complete this year.</p><p>Councilman Chip Badeaux expressed concern at Tuesday’s meeting that city residents’ water bills rose by 15 percent at the start of the year.</p><p>Caillouet and other officials say the hike was not spurred by the bond issue, which will be paid for with city water revenues. </p><p>Water prices rose in line with average rates of the previous 12 months, as determined by the U.S. Department of Labor South Urban National Consumer Price Index and required by city ordinance.</p><p>Badeaux voted for the bond issue but questioned why the consumer-price index showed such an increase, when the South Region Consumer Price Index compiled by the federal Labor Department states water prices in the South were unchanged for the last 12 months.</p><p>I have never in 40 years seen a CPI higher than 5 percent, he said.</p><p>Staff Writer Ben Lundin can be reached at 448-7635 or ben.lundin@dailycomet.com.</p>